Question

Analyze the prospectuses of five companies going public. What are the reasons they state for going public? How are they going to use the proceeds? What are the major risk factors presented? PLEASE DO NOT COPY FROM ANOTHER ANSWER ON HERE

Answer 1

Following are 5 cos. Going public and others highlights over the same.
1)	ABC Ltd. (Healthcare Industry)
	Reason for Going Public:
	a )	They want to go public because they are planning to expand their business by raising funds from public.
	b)	Government policies related to healthcare industries are getting liberal.
	c)	Government subsidies are easily available.
	Utilization of Funds:
	a)	They will use the proceeds to Purchase latest medical equipments.
	b)	They will purchase a premises for their hospital.
	c)	Start new branches to reach maximum no. of people.
	Major Risk Factors:
	a)	Competition in the market.
	b)	Sudden collapse of Stock market.
	c)	Government policies getting strict.
2)	XYZ Ltd. (Pharmaceutical Industry)
	Reason for Going Public:
	a )	They want to go public because they are planning to expand their business by raising funds from public.
	b)	They want to attract Foreign Investments.
	c)	Government policies related to Pharma Co. are getting liberal.
	Utilization of Funds:
	a)	Purchase of new premises.
	b)	Invest in Research and Development for new medicines.
	Major Risk Factors:
	a)	Competition in the market.
	b)	Sudden colaps of Stock market.
	c)	Rejection of any new medicines by USFDA
3)	PQR Ltd( Banking Industry)
	Reason for Going Public:
	a )	They want to go public because they are planning to expand their business by raising funds from public.
	b)	They want to attract Foreign Investments.
	c)	The want to attract customers through advertisements.
	Utilization of Funds:
	a)	Puchase new premises.
	b)	Hire more qualified staff from Finance field
	Major Risk Factors:
	a)	Competition in the market.
	b)	Rising rate of NPA of the bank.
	c)	Strict RBI related Norms.
4)	PWC Ltd. (Accounts and Audit Firm)
	Reason for Going Public:
	a )	They want to go public because they are planning to expand their business by raising funds from public.
	b)	Buy new premises.
	c)	Hire qualified Staff.
	Utilization of Funds:
	a)	Buy new premises.
	b)	Hire qualified Staff.
	Major Risk Factors:
	a)	Competition in the market.
	b)	Frequent changes in Accounting policies.
	c)	Changes in laws related to audit and taxation firms.
5)	LMR Ltd. (Tyre Industries )
	Reason for Going Public:
	a )	They want to go public because they are planning to expand their business by raising funds from public.
	b)	They want to attract Foreign Investments.
	c)	Government subsidies are easily available.
	Utilization of Funds:
	a)	Installation of new Manufacturing Plant.
	b)	Installation of new and lattest Machinery.
	Major Risk Factors:
	a)	Sudden collapse of demand for the product.
	b)	Increase in competition.
	c)	Sudden collapse of Stock market.